New Jersey vs Washington: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 With taxes at 10.75% versus no income tax, $85,000 earners see about $9,138 annual difference. Washington compensates via no income tax. Washington attracts commuters seeking tax efficiency; New Jersey pulls outdoor lovers prioritizing cultural amenities.
Looking at the numbers, New Jersey's 10.75% rate versus Washington's no income tax means about $9,138 difference annually on $85,000. That's the kind of gap that gets people's attention, even if other factors ultimately drive the decision.
🔑 Key Differences
- **State income tax**: New Jersey at 10.75% vs Washington at no income tax
- **Annual savings** (on $85,000): Washington saves you ~$9,138
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | New Jersey | Washington |
|---|---|---|
| State Income Tax | 1.4% - 10.75% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $2,430
Take Home: $37,570
|
State Tax: $0
Take Home: $40,000
+$2,430
|
| 💰 On $60,000 Salary |
State Tax: $3,645
Take Home: $56,355
|
State Tax: $0
Take Home: $60,000
+$3,645
|
| 💰 On $100,000 Salary |
State Tax: $6,075
Take Home: $93,925
|
State Tax: $0
Take Home: $100,000
+$6,075
|
| Cost of Living | New Jersey ranks among America's most expensive states. Property taxes top national charts - median exceeding $9,000 annually. Housing prices demand significant income, particularly in areas with NYC access or strong schools. Auto insurance costs among highest nationally. General expenses elevated. Some areas require six-figure household incomes for comfortable middle-class living. The cost burden means even substantial salaries face pressure from taxes and elevated living expenses. | Washington costs split dramatically. Seattle metro ranks among America's most expensive - median home prices often exceed $700,000-800,000 in desirable areas. Monthly rent for decent apartments runs $2,000-3,000. Sales tax reaches 10% in Seattle. Spokane and Eastern Washington offer substantially better value. Property taxes significant. The no-income-tax advantage creates benefit, though Seattle housing costs require six-figure incomes for comfortable family living. |
Pros & Cons
New Jersey
✓ Advantages
- Proximity to NYC and Philadelphia job markets without those cities' taxes
- Strong pharmaceutical and biotech industries
- Excellent public transportation in some areas
- Good school systems in many districts
- Shore access and diverse geography
⚠ Considerations
- High state income tax reaching 10.75% at top brackets
- Highest property taxes in America
- Very high cost of living overall
- Expensive auto insurance rates
- Heavy traffic and congestion in many areas
Washington
✓ Advantages
- No state income tax provides major advantage
- Strong technology and aerospace sectors
- Beautiful natural scenery and outdoor recreation
- No state estate or inheritance tax
- High minimum wage in many cities
⚠ Considerations
- Very high cost of living in Seattle area
- High sales tax (often 10%+ in Seattle)
- Rainy weather for much of the year
- Traffic congestion severe in metro areas
- Property taxes offset lack of income tax
Bottom Line
From a tax standpoint, Washington delivers about $9,138 more take-home at $85,000. New Jersey compensates through no income tax, keeping it competitive for certain demographics. commuters tend to choose Washington, while outdoor lovers populations often lean toward New Jersey despite higher taxes.📢 Share This Comparison
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